Among countries with per capita GDP in 2006 of greater than $24,000,
A. governments tend to be repressive and corrupt.
B. the political structure tends to be relatively democratic.
C. tax rates tend to be extremely high.
D. all of the options are correct.
Answer: B
You might also like to view...
After NAFTA was signed, the United States allowed more tomatoes to be imported from Mexico. What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?
What will be an ideal response?
If a Central Bank wishes to reduce the supply of money, it should:
(a) Reduce the reserve requirement. (b) Raise the reserve requirement. (c) Instruct banks to reduce their savings rates. (d) Do all of the above.
John and Jane decide to go on a vacation. As a result, they withdraw $2,500 from their savings account to purchase $2,500 worth of traveler's checks. As a result of these changes,
a. M1 increases by $2,500 and M2 decreases by $2,500. b. M1 increases by $2,500 and M2 stays the same. c. M1 and M2 stay the same. d. M1 decreases by $2,500 and M2 increases by $2,500.
Suppose that the interest rate on a conventional 30-year mortgage is currently 8%. You receive a call from a mortgage broker who offers you a 30-year adjustable rate mortgage at 2% that is adjusted once each year. Evaluate each mortgage in terms of the following: risk that the monthly payment will change over the next 30 years and interest-rate risk.
What will be an ideal response?